Supply-Demand Shifts in Copper Market

Steps:

• Copper producers' costs increase, shifting supply curve left (decreased supply at each price).
• Rapid global economic growth increases copper demand, shifting demand curve right (higher quantity demanded at each price).
• New equilibrium forms at intersection of left-shifted supply and right-shifted demand.
• Result: higher equilibrium price; quantity change depends on shift magnitudes, but typically higher if demand shift dominates.

Why A is correct:

• Point A shows higher price and quantity consistent with dominant demand increase overpowering supply decrease, per supply-demand equilibrium law.

Why the others are wrong:

• B: Reflects only supply decrease (higher price, lower quantity), ignoring demand growth.
• C: Shows only demand increase (higher price and quantity), ignoring cost rise.
• D: Indicates lower price, contradicting both shifts' upward pressure on price.

Final answer: A